This invention pertains generally to systems and methods for selling lottery tickets. More particularly, it relates to a system and method for providing shared-ownership lottery plays, which can be used to promote lotto games. In some lotto games, the set of numbers X chosen by the player includes five numbers chosen from the universe or bank of numbers U, which includes numbers one to U, where U is substantially greater than five. In other lotto games, the player also chooses an additional number from a second bank or universe of numbers U2, which includes numbers from one to U2, and the lottery also draws an additional number, for a total of six numbers chosen by the player and six numbers drawn by the lottery. The jackpot is won if all numbers chosen by the lottery match the set of numbers selected by the player. Matching less than the maximum possible number of matches within the number set results in smaller prizes. The set of numbers X selected by the player can be referred to as a “number set,” “board,” “panel,” “lottery play” or “play.” A “lottery ticket” or “ticket” includes one or more lottery plays. Lotto games can also include other combinations of selections. The main element that defines a lotto game is that the player selects numbers from one or more universes of numbers and the lottery selects numbers from one or more universes of numbers with the prize or prizes being a function of the numbers that match between the player and the lottery.
It is important for state, provincial and other lotteries worldwide to sustain player interest in their lotto games and products that have been offered by the lotteries for years. Yet, sustaining player interest in these maturing lottery games and products, particularly in the large interstate jackpot games, has proven more and more difficult every year. For example, the Powerball™ and Mega Millions® games typically must now achieve a jackpot prize of $100 million to generate the same sales that were previously generated at a jackpot prize of $50 million. At every jackpot level below $100 million there is less and less player interest than there was a year or two prior, even after adding in the population base from new states joining these games.
Some of these lotto games, such as the Powerball™ and Mega Million® games, are sold under agreement between multiple states. Others are intrastate games, such as the Fantasy 5™ lottery game or The Pick™ lottery game offered by the Arizona Lottery or the Classic Lotto 47 game offered by the Michigan Lottery. For these games, the increasing dollar amount of the jackpot prize has been the primary focus point of marketing promotions in generating player interest and thus, in generating sales in the game. However, player interest in these games begins to wane as the players become jaded or apathetic to the jackpot prize, known in the industry as “jackpot fatigue,” and after recognizing the increased difficulty of winning any significant prizes.
To regain player interest and increase sales, state lotteries have continually resorted to raising the jackpot and other prize amounts by increasing both the odds against winning and extending the life of the annuity option in the case of the jackpot prize. Because of the higher odds against winning, however, state lotteries are now faced with the additional negative marketing factor of increased elapsed time between wins for virtually every prize level, as well as player awareness of and disappointment with these higher odds. The latter has resulted in significant player abandonment of most lotto games either completely or until the jackpot reaches much higher levels.
For example, in the Powerball™ game and its predecessor game, Lotto America®, the odds against winning have been increased over time from approximately 19 million to one in 1988, to 26 million to one, to 80 million to one, to 121 million to one, to 146 million to one by 2005. Increasing the odds reduces the frequency of players winning the jackpot and other prizes, allowing the jackpot to grow larger. In addition to changing the size of the number set from which a player must select their numbers, another method that has been employed to increase the size of the jackpot has been the introduction of a second bank of numbers so that the prizes are based on matching one or more numbers from the first bank and one number from the second bank. This method increases the jackpot prize while simultaneously offering more combinations of winning, albeit for smaller prizes.
Extending the life of the annuity also permits a higher jackpot amount to be stated due to the time value of money. For example, $100 million in the bank today accruing interest at 7% and paid out over 20 years totals $189 million in payments, but over 30 years totals $242 million. The result is that the longer the payout, the higher the advertised jackpot. When made aware of this fact, however, players react negatively, particularly at a 30-year annuity, which can result in the cash value becoming less than half the advertised jackpot.
This currently-deployed and pervasive core marketing concept of raising the size of jackpots by raising the odds against winning is directly contributing to player apathy, fall-off, and abandonment, especially at lower jackpot levels. The long term result has been a continual decline in sales due to jackpot fatigue and disenchantment with the possibility of winning any significant prize. This same problem, although less pronounced, also exists with intrastate lotto games.
Therefore, there is a need for a new marketing method and system for lotto game promotions that reinvigorates player interest, incentivizes sales, does not require increasing the odds against winning, does not take away from the jackpot level, provides more players with significant prizes, and increases an individual player's chances of becoming a jackpot winner without lowering the odds of the game.
One object of the present invention is to provide such a method and system that can produce powerful sales incentives of: new options, easy access, more chances to win, and more play variety and excitement, in order to capture new players, recapture lost players, and re-energize current players to purchase more tickets.
Another object is to provide a method and system that gives the players more chances of winning more prizes of significant value. The two dominant inter-state games, for example, offer one jackpot prize which currently grows to over $100,000,000 every few months, a $250,000 (or $200,000) second prize, and a $10,000 third prize plus some smaller prizes of $150 and less. But, many players would be more than satisfied with a shared-ownership mode of playing that significantly increases their chances of winning, even though they would ultimately share any jackpot or smaller prize with others. For example, these players would be more than satisfied with having significantly more chances of winning millions or tens of millions of dollars, $25,000, $20,000 or even $1,000 than just one chance per dollar spent on winning a larger prize.
Another object is to provide a method and system that mitigates negative player reactions and fall-off when state lotteries increase the odds against winning in order to increase jackpots. The traditional method of just increasing the odds forces all players into choosing either the one mode of playing, or not playing at all. But by adding shared-ownership lottery plays to the mix, all players can choose a mode of playing that suits their personal tastes and interests. Thus, those who become disenchanted can offset the higher odds with more chances to win via their shared-ownership tickets.
Another object is to provide state lotteries with a marketing product and method of promotion that can invigorate interest and increase sales without requiring them to endure the inconvenience and expense of a game change. Currently, any change in a multi-state game affects all the participating states, and thus requires significant time, effort, and expense to accomplish. But, offering a shared-ownership lottery ticket according to the present invention does not require any game change and creates a brand-new marketing opportunity with dozens of promotional opportunities.
Still another object is to provide a marketing product and method of promotion that does not give away additional prize amounts or require discounts or giveaways, as is the case with many current “Buy This and Get That” lottery product promotions. With shared-ownership tickets according to the present invention, each such ticket generates the same amount of revenue as a non-shared ticket, and the incentive is not a discount, but the appeal of more chances to win at an affordable price. Therefore, there is no dilution of the revenue going into the prize fund relative to the total number of tickets sold.
Another object is to create a greater number of significant prize winners for the lottery, because more winners mean more goodwill and positive public relations via word-of-mouth and media coverage of winner's stories. For example, instead of one $100,000,000 winner there can be ten $10,000,000 winners, or instead of a single $200,000 or $250,000 winner, there can be ten $20,000 or $25,000 winners, or instead of a single $10,000 winner there can be ten $1,000 winners. The lottery will have significantly more exciting winners' stories to share in their advertising and for public relations, which contributes to their goodwill and is a key ingredient to growing sales.
Another object is to provide state lotteries with a marketing product and method of promotion that is completely parameter controlled by the individual state lottery itself. Thus, with shared-ownership tickets, unique marketing promotions can be created and controlled to target specific marketing objectives and better achieve desired results. Currently, there are no state-controllable marketing parameters within the traditional games. However, with the present invention, the state lotteries will have at least five controllable parameters that can be adjusted to affect demand for lottery plays without requiring changes in the game. These controllable marketing parameters are as follows: 1) the details of the qualifier; 2) the quantity of shared-ownership lottery plays; 3) the pricing of the shared-ownership lottery plays; 4) the timing of when the qualifier must be met, for example, by date, jackpot level or simply as announced; and 5) the option to offer the shared-ownership lottery plays at different times, such as when the qualifier is met, at a future date or at different jackpot levels.
Another object is to provide a variable and controllable incentive to promote any lottery product or program. For example, to incentivize players to become a member of a player club, sign up for a player card, promote pull-tabs, instant tickets, new products or to take a survey.
Another object is to provide players with the security and flexibility they have always wanted when pooling with others. A shared-ownership lottery ticket according to the present invention provides “pooling in a ticket,” which is a vastly improved process over the traditional “office pooling” process. It eliminates the burden and potential risks of collecting money, tracking names, buying tickets, distributing photocopies of the tickets, overlooking winning combinations, player disputes, and collecting and distributing winnings. For the first time, players who want to participate in a pool of tickets no longer have to rely on the honesty or security of the ticket purchaser because they can now hold onto their own ticket(s). There will be no more controversy or legal actions, over issues like “Who is in and who is not,” or “You forgot to put me in the pool” so often found with private pools, and each player can now decide how much to spend and when to spend it. Many members of office pools will now do their pooling with shared-ownership tickets, and business executives will be happy to avoid possible legal exposure and will see their employees spending less of the company's valuable time interacting with the office pool and using the company's copying machine, phones, and email systems. For the first time, players who pool using the present invention will receive the protection, security, and oversight of the state lottery.
Another object is to provide equal access and opportunity for all adult citizens who desire to participate. For the first time, the majority of current and potential lottery players, which includes independent workers, those working in small businesses and the retired, can receive access to the benefits of pooling without having to work in a large office, or other venue where employees or members put together lottery pools.
Yet, another object is to help protect the elderly and other vulnerable citizens. By offering shared-ownership lottery plays according to the present invention, state lotteries will remove the primary incentives used by lottery scam artists, and illegal out-of-country lotteries who solicit via the phone and Internet preying on the elderly and other vulnerable adults. For example, the US Postal Service intercepted over 1.4 million lottery letters in the fiscal year ending in 2006 and these are only a few of the letters that find their way through the US mails. In addition, the elderly are also preyed upon via boiler rooms and the Internet scams. The elderly are continuous targets of lottery scams offering them hundreds of chances of winning. With the present invention, the elderly will no longer have to turn to private parties to give themselves more opportunities to become a lottery winner.
Additional objects and advantages of the invention are set forth in the following description, and in part will be apparent from the description, or can be learned by practice or observation of the invention. The objects and advantages of the invention may be realized and obtained by means of the methods and apparatus pointed out in the appended claims.